Is It Still Worth It To Use The Gi Home Loan Guarantee For Veterans?
If you are eligible for the GI home loan, is it worth going through the hoops to get approved before buying a home, or is it better to just get a mortgage like everyone else. What are the benefits and drawbacks of getting a mortgage through the VA vs. going the civilian route? I heard rumors of horror stories involving veterans in Orange county who got into financial trouble when their homes depreciated in value. I think this happened in the 70s or 80s. Thanks.
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As in all things, it depends on the person. If you have a 20% down payment, conventional financing my be the best way to go. If you don’t have the down payment, then VA may be the best way to go. Remember, VA doesn’t make the loan, they just guarantee a portion of it, similiar in the same way mortgage insurance companies work. Depreciating home values hurt more than just veterans, it also has the same effect on conventionally financed homes. You should purchase a home based on what you can afford, not what it may be in value in a year or two.